The company has filed a patent for a service called "GPay" that would allow you to pay for goods and service on your mobile phone. According to the filing, a text from a mobile could spark a "computer-implemented method of effectuating an electronic online payment".

Basically, a text is sent to Google, detailing payment to someone else, GPay would then take money out of your account and put it in the account of the specified payee. Not only would you pay for goods online, but you could also pay at the shops or vending machines.

The filing has unleashed rumours that the search giant is about to launch a new phone, dubbed "GPhone". If the rumours prove true, then Google could soon be launching a range of phones in the US that could sell for as little as $50.

Google was quick to dismiss talk of a new phone or mobile service.

A Google spokesbot said that "like many companies, we file patent applications on a variety of ideas that our employees may come up with. Some of those ideas later mature into real products or services; some don't. Prospective product announcements should not be inferred from our patent applications."

It's all very well but will it look as good as the iPhone?